The Experience Economy

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This work is based upon work supported by the New York Wine and Grape Foundation

The Experience Economy
Delivering world class value through New York Wineries
Presented by Richard “Rick” Lagiewski And Shannon Brock
Sponsored by the New York Wine and Grape Foundation

Why do people buy a Harley Davidson Motorcycle?
Is it about the features of a motorcycle? Is it the feeling of cool, freedom, being a rebel? Which is better? Which is harder for a competitor to copy?

The Progression of Economic Value – in a competitive
environment
Differentiated Relevant to

Stage Experiences

Competitive Position

Deliver Services

Needs of Customers

Make Goods

Undifferentiated

Extract Commodities

Irrelevant to

Market

Pricing

Premium

Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

Economic Distinctions

Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999, Pg. 171

The Goal is to ……
• Turn an ordinary event into a memorable experience. i.e. stage an experience.

Experiential Realms
• Customer Participation
– Passive = Customers don’t affect the performance – Active = Customers play a key role in creating their experience



Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

Experiential Realms
• Connection – Environmental Relationship
– Absorption = Viewing NASCAR from the grandstand – Immersion = Watching the race from Pit row

–Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

The key is the sweet spot
• Where all four realms meet.

The Sweet Spot
Absorption

Passive Participation

Entertainment Esthetic

Educational Escapist

Active Participation

Immersion
–Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

How to achieve this?
• • • • • Theming Provided positive cues Eliminate negative cues Mix in Memorabilia Engage all five senses – Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

Experiential Marketing
• Hearts are not rational • Pictures have replaced words • Advertising has completely changed • We love to buy, but we hate to be sold to. • Features and Benefits selling is a relic of the 1980’s • Experiential marketing drives emotional decisions based on feelings

“What’s reason got to do with it?”
The Objective of Experiential Marketing To create desire for the future feelings associated with what is implicitly being offered.

Feeling created “I want that”

Why? “I just do.”

Modified from Peter Jones – Selling to the Dream Society 2006

Experiential Marketing
Out
Direct Push Explain Overt Claim Focus on the seller’s message

In
Invite Tempt Tease Implied Promise Focus on the buyer’s feelings

Modified from Peter Jones – Selling to the Dream Society 2006

How do you translate Experiences into production?
Understand the final objective…… From the buyer’s perspective Understand what sort of experience you are offering Work the process right through to how you want your customer to feel when they use what has been purchased

Create Key Emotion Propositions

Modified from Peter Jones – Selling to the Dream Society 2006

How do you translate experience into production?
Understand the final objective…… From the buyer’s perspective Understand what sort of experience you are offering Work the process right through to how you want your customer to feel when they use what has been purchased

Organic Create Key Emotion Propositions Use an organic lexicon, not a mechanical one

Mechanical

Create a story that will deliver the Enjoy Tour Hours implied promise of those feelings. Make Lists Stories are strong. Explore Call now Learn Prices Feel Offering Mystery Demonstration

Modified from Peter Jones...
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